One card per question you missed, the ones you were sure about first. Cover the answer, say it out loud, then check. Look at each card again on the days listed: 1, 3, 7 and 21 days from Oct 25. If you miss it again, start that card over.
Life Insurance: Basicsmarked sure
Meera, 35, has a $10,000 emergency fund. She decides to pay any final expenses from savings if she dies, but she buys a term policy so her children's living costs would be covered. Which risk management methods is she using?
Answer: B. Retention for the small exposure and transfer for the large one
B is correct. Retention means accepting a loss you can afford to absorb, as Meera does with final expenses. The NAIC consumer glossary describes retention as using internal funds for a loss exposure instead of transferring it to an insurer.
Source: CDI, Life Agent License Examination Objectives (effective Jan. 1, 2026)
Life Insurance: Types of Life Policiesmarked sure
An insured dies within the contestability period after taking his own life. What does the insurer usually pay under the policy?
Answer: C. A refund of premiums paid
C is correct because the cited source states that suicide during the contestability period usually results in a refund of premiums paid rather than payment of the death benefit. A is wrong because the full face amount is not usually paid in that situation.
Source: CDI, 2025 Life Insurance Policies Four-Hour Course outline (issued May 8, 2024)
Life Insurance: The Individual Life Insurance Contractmarked sure
A consumer is considering buying a deferred annuity and plans to hold it for only two years. Which statement is most accurate?
Answer: A. A deferred annuity is usually not a good idea unless the buyer plans to keep it for more than just a few years.
A is correct because the guide states that it is usually not a good idea to purchase a deferred annuity unless the buyer plans to keep it for more than just a few years. D is wrong because the guide says the opposite, that short holding periods are generally poor fits, and it notes surrender charges can apply.
Source: CDI, Life Insurance Guide (consumer guide)
General Insurance: Contract Lawmarked sure
An underwriter privately concludes that a healthy 58-year-old applicant will probably live past 90. After the policy is issued, the applicant learns of the note and argues that the insurer should have shared this opinion before he chose a smaller face amount. Under the California Insurance Code, was the insurer required to share it?
Answer: A. No, because neither party must share its own judgment, even when asked
A is correct. Insurance Code section 339 says neither party to an insurance contract is bound to communicate, even upon inquiry, information of his own judgment on the matters in question. An underwriter's opinion about life expectancy is judgment, not a fact.
Source: Cal. Ins. Code § 339, judgment need not be communicated (official text, California Legislative Information, read 2026-10-19)
Life Insurance and Annuities: Policy Replacement and Cancellationmarked sure
Tobias, 34, buys a new individual term life policy in California. It is not a replacement and is not connected to a loan. What return period may the insurer set in the notice printed on the policy?
Answer: A. A period of at least 10 days and no more than 30 days
A is correct. Insurance Code section 10127.9 requires individual life policies and annuities to carry a notice that the owner may return the policy for cancellation, and the period the insurer sets must be not less than 10 days nor more than 30 days.
Source: Cal. Ins. Code § 10127.9, right to return (official text, California Legislative Information, read 2026-10-19)
General Insurance: Basic Insurance Concepts and Principlesmarked sure
A state insurance commissioner asks whether federal law changes the commissioner's authority over insurers. Which conclusion best matches the TRIA provision on state regulation?
Answer: C. The federal act leaves the commissioner's jurisdiction and regulatory authority unaffected, subject to listed exceptions.
C is correct because the cited source quotes Section 106(a), which says nothing in the title shall affect the jurisdiction or regulatory authority of the insurance commissioner, subject to two exceptions.
Source: Congressional Research Service, Terrorism Risk Insurance: Overview and Issue Analysis (R47042), 'Insurability of Terrorism Risk' (insurance pools many risks; four ideal elements of an insurable risk)
Life Insurance: Basics
A client's premium is due on the first of the month and they pay nothing. Which statement about their coverage is correct during the usual payment window?
Answer: C. The policy remains in force throughout the grace period, so coverage continues
C is correct because the grace period is usually 31 days after the premium due date, during which an overdue premium may be paid without penalty and the policy remains in force throughout.
Source: CDI, Life Insurance Guide (consumer guide)
Life Insurance: Basics
A life insurer is building a table that shows how likely a person of each age is to die in a given year. Which tool does the insurer use for this purpose?
Answer: C. A mortality table showing the death rate for each age
C is correct because a mortality table is a statistical table showing the death rate, or probability of death, for each age. A is wrong because an illustration is a sales presentation document that assumes current payments continue.
Source: CDI, Life Insurance Guide (consumer guide)
Life Insurance: Basics
A policyholder with a term policy stops paying premiums and has no cash value built up. Which term describes the discontinuation of coverage in this situation?
Answer: A. Lapse
A is correct because lapse is the discontinuation of insurance without cash value when the required premium is not paid. B is wrong because loan value is the amount borrowed against the policy using its value as collateral. C is wrong because free look is the right to examine and return a new policy for a refund.
Source: CDI, Life Insurance Guide (consumer guide)
Life Insurance: Types of Life Policies
An insurer wants to end a California individual life policy for unpaid premium. Which step must it complete before the termination takes effect?
Answer: A. Give the policyholder and the named designee at least 30 days' notice
A is correct because an individual life policy cannot lapse or terminate for nonpayment of premium unless the insurer gives at least 30 days' notice to the policyholder and their designee, per Insurance Code section 10113.72.
Source: CDI, 2025 Life Insurance Policies Four-Hour Course outline (issued May 8, 2024)
Life Insurance: The Individual Life Insurance Contract
When Priscilla, 52, applied for her life policy, she named her son to receive any notice of pending lapse. Three years later she wants to name her sister instead. Which statement is accurate?
Answer: D. She may change it, and the insurer must remind her yearly of that right
D is correct. Insurance Code section 10113.72 bars issuing an individual life policy in California until the applicant has been given the right to designate at least one other person to receive notice of lapse for nonpayment.
Source: Cal. Ins. Code § 10113.72, lapse notice designee (official text, California Legislative Information, read 2026-10-19)
General Insurance: Contract Law
An insurer denies a death claim by pointing to an answer in a separate health questionnaire that was never attached to or endorsed on the policy. The insured gave the answer in good faith, and no fraud is alleged. Under California's entire contract rule, how should the questionnaire be treated?
Answer: A. It is not part of the contract, because only attached writings are incorporated
A is correct. Insurance Code section 10113 says every life or disability policy is the entire contract between the parties, and nothing is incorporated by reference to an application or other writing unless it is endorsed on or attached to the policy.
Source: Cal. Ins. Code § 10113, entire contract (official text, California Legislative Information, read 2026-10-19)
Life Insurance and Annuities: Policy Replacement and Cancellation
Northgate Life receives an application for a new universal life policy. The agent's signed statement shows that the policy will replace the applicant's whole life policy from another insurer. Under California's replacement rules, what must Northgate do about the existing insurer?
Answer: B. Notify the existing insurer within three working days of receiving the application or issuing the policy
B is correct. Insurance Code section 10509.6 requires the replacing insurer to communicate with the existing insurer within three working days of the date it receives the application in its home or regional office, or the date it issues the policy, whichever is sooner.
Source: Cal. Ins. Code 10509.6 (official text, California Legislative Information), replacing insurer duties
Review on: Oct 26, Oct 28, Nov 1, Nov 15.